European stocks open lower as US-China trade conflict escalates

European stocks opened lower Tuesday morning after the Trump administration decided to impose 10 percent tariffs on $0 billion worth of Chinese imports.

Shortly after the open, the pan-European Stoxx 0 index turned lower, down 0.1 percent. Banks, technology, telecoms in addition to retail are among the worst performing sectors.

Market focus across the entire world can be largely attuned to developments from the escalating trade conflict between U.S. in addition to China. President Donald Trump will impose 10 percent tariffs on $0 billion worth of Chinese imports, in addition to those duties will rise to 25 percent at the end of the year, according to a Monday announcement.

The White House removed about 300 goods via a previously proposed list of affected products, including smart watches, some chemicals in addition to various other products such as bicycle helmets in addition to high chairs.

On Tuesday, the Chinese Commerce Ministry said the country has no choice however to retaliate against the latest round of U.S. tariffs in order to safeguard its rights in addition to interest in a free trade world..

European tech stocks, part of the greater supply chain for big tech manufacturers, were trading slightly weaker on Tuesday following Trump’s announcement. Among those, AMS down 1.25 percent in addition to STMicroelectronics were down 0.74 percent.

Retail stocks were also under-performing Tuesday. Zalando shares were down 17 percent (creating which the worst performer on the Stoxx 0) after the retailer cut its 2018 guidance for the second time in two months. The German company said the summer heat wave delayed a switch to the winter season in addition to will impact full-year earnings.

Swiss chemicals firm Clariant was trading up more than 7 percent after announcing which which will enter into a brand-new joint venture in high performance materials with brand-new shareholder, Saudi Arabia’s SABIC.

Meanwhile, British online supermarket retailer Ocado was a bright spot from the sector with the stock up 1.7 percent on London’s FTSE index after its sales growth rose 11.5 percent from the third quarter via the same period a year ago.

Back in Europe, European Central Bank President Mario Draghi can be likely to speak at an event organised by l’Autorité de Contrôle Prudentiel et de Résolution (ACPR) in Paris, Nouy.

Meanwhile, Ferrari can be set to host its first capital markets day since the passing of former CEO Sergio Marchionne earlier which summer. The Italian supercar maker will present its hotly anticipated mid-term business plan – in addition to unveil a brand-new car – at the event at its headquarters in Maranello, Italy on Tuesday. Shares of the carmaker were trading 2.6 percent higher Tuesday morning.